Oil price rises to its highest level in eight years by touching US $ 100 due to tensions between Russia and Ukraine

The Petroleum hit its highest price since 2014 on Tuesday as tensions between Russia and Ukraine escalated after Moscow ordered troops to be sent to breakaway regions, raising supply concerns that have pushed prices close to $100. per barrel.

The United States and its European allies are close to announcing new sanctions against Russia after President Vladimir Putin formally recognized two regions of eastern Ukraine, escalating a security crisis on the continent.

“The potential for a rally above $100 a barrel has received a huge boost”, said Tamas Varga, of the PVM oil brokerage. “Those who have bet on such a movement anticipated the escalation of the conflict”.

At 10:00 GMT, Brent crude was up $3.38, or 3.5%, at $98.77, after hitting $99.50, its highest level since September 2014.

US West Texas Intermediate (WTI) oil was up $4.40, or 4.8%, at $95.47 from Friday’s close, after hitting $96, also a high not seen since 2014. The US market was closed on Monday for a holiday.

“We see the oil market in a period of turmoil and nervousness, fueled by fears and geopolitical emotions”, said Norbert Rücker, an analyst at Julius Baer. “Given the prevailing mood, oil prices are very likely to hit triple digits in the near term”.

The Ukraine crisis has added further support to an oil market that has surged due to tight supplies as demand recovers from the coronavirus pandemic.

The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have resisted calls to increase supply more quickly.

A senior British secretary said Tuesday that Russia’s invasion of Ukraine has created a situation as dire as the 1962 Cuban missile crisis, when a standoff between the United States and the Soviet Union brought the world to the brink of war. nuclear.

Talks on renewing Iran’s nuclear deal with world powers continue, which could eventually boost Iran’s oil exports by more than 1 million barrels per day.

With information from Reuters

RECOMMENDED VIDEO